heyOn February 20 of this year, I was enjoying the sunny weather in Goa, where the locals await the annual invasion of Russian tourists. Unfortunately, Vladimir Putin had other plans for Russia, as earlier that day, Russian tanks and armored personnel carriers flown over the Crimean border and into Ukraine. And what began as a special operation seven months later looks like a disgrace to Putin, whose inadequate and poorly trained soldiers are being given the fight for their lives by Ukrainian defenders.
That day in Goa, I was driving a Skoda Slavia sedan, which was to be launched soon. I loved Slavia, just like her brother Volkswagen Vertus. Since the launch of these sedans, they have both become strong competitors, and while the cars are mechanically similar, I prefer the Czech model over the German one because of the sleek looks of the Slavia. But what do these sedans have to do with the war in Ukraine? Well, a few years back, Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) decided to pull out of the diesel segment. This was apparently also due to the cost of complying with Bharat Stage 6 norms and partly repercussions of the ‘Dieselgate’ emissions scandal involving Volkswagen.
The Slavia and Vertus (as well as the Kushak and Taigun) only have turbocharged petrol engines, and while both engine options (1 liter and 1.5 litres) are excellent, the start of the Ukraine war meant that the mass was underway. The inevitable rise in the price of crude oil and prices of refined products, petrol and diesel. While modern petrol engines, even turbocharged ones, are much more efficient than previous generations, petrol-power seemed wasted, with fuel touching Rs 125/litre in some Indian cities.
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Of course, petrol prices have come down. And after two years of disappointing demand, the Indian automotive market is having a bumper year. But interestingly, there have been subtle changes in the vehicles for sale. Not only are they getting frighteningly more efficient, the adoption of zero-emissions electric vehicles has increased as well. Particularly in the two-wheeler and three-wheeler segment, the adoption of battery-powered vehicles has increased significantly despite higher costs, as users clearly see economic benefits for such vehicles.
If you set out to check what type of vehicle your latest food or e-commerce delivery arrived on, especially if you live in a large city, it’s likely to be an electric vehicle. State transport corporations have also got the message, almost every new order for intra city buses has been for electric buses. Even buyers of electric cars are seeing a plethora of options on their way. And despite the infrastructure issues, the recent launch of the Tata Tiago EV could drive demand even higher. The Tiago EV is India’s first hatchback electric vehicle with a starting price of Rs 8.5 lakh, the first electric vehicle available under Rs 10 lakh. The base version of the petrol Tiago costs Rs 3 lakh less.
Changes in the mass-market have not been as dramatic as in the luxury segment. Mercedes-Benz recently introduced the first luxury electric sedan to be assembled in India, the EQS580 4Matic with Road Transport and Highways Minister Nitin Gadkari inside the car. The EQS, which can be compared to the ultra-luxurious Mercedes-Benz S-Class sedans, is actually much cheaper than the S350d and S450 4Matic when you consider the lower GST rate for electric cars and the low or non-existent rates. Existing road tax and registration fee in some states. In some states, the EQS580 4Matic is cheaper by Rs 30 lakh, and while it lacks some of the features of the traditional S-Class, is worth the money. Not only is the electric version cheaper, it costs money to drive per kilometer than its gas-guzzling siblings. “This is the beginning of Mercedes-Benz India’s electric ambitions,” Santosh Iyer, Vice President (Sales and Marketing) MB India told me during the rollout.
While Mercedes-Benz India always intended to produce the EQS at its Chakan plant even before the war in Ukraine, consumer preferences have changed dramatically. But that doesn’t mean there are no challenges in electric switchover, especially for India. It has been acknowledged in the highest ranks of the government that India is highly dependent on China in the matter of electric vehicles. China has a leading position in sourcing raw lithium as well as other important materials needed for electric vehicles, including nickel, cobalt and rare earth elements.
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The Performance Linked Incentive (PLA) scheme as well as other concessions for manufacturing by the government show that despite some missteps, it is trying to lure manufacturing into India. There has also been a major push by the government and the group towards hydrogen power for transportation. Although the production of hydrogen in its various forms (black, brown, blue and green – the colors indicate where the hydrogen is obtained) is still expensive and a sustainable and inexpensive method of production is still flourishing decades later. Maybe in.
However, price shocks in crude oil, natural gas and other commodities following the start of the Ukraine crisis have taught the Indian government and vehicle consumers that the same old thing cannot last. Car manufacturers have responded by creating more fuel-efficient vehicles and launching new technologies such as more robust hybrids and many more electric vehicles. But what will the future be?
@kushanmitra is an automotive journalist based in New Delhi. Thoughts are personal.
(Edited by Anurag Choubey)